With a barrage of examples of the uses and patented inventions made possible by graphene, Grigor explained that the supermaterial had the distruptive potential to affect demand for other mined commodities.
Graphene can be added to exisiting materials and products to enhance their function and performance, and reduce the quantites required in production; such as when graphene is added to copper it can increase conductivity and reduce the material need for the tradtional commodity by up to 80 per cent.
It can also be used in the manufacture of concrete, increasing it's strength and precluding the need for steel reinforcing altogether.
Grigor also explained that the material strength of graphene, 200 times that of steel by weight, meant it could be used to create vastly stronger steel which would reduce the amount of iron ore required, and also reduce transport costs on the final product.
"There has been an explosion in the number of patents being taken out, as industry has been preparing to take advantage of a new and deeply disruptive graphene age."
The ability for miners to take advantage of this new market was limited to contributing graphite to the front end of the supply chain, sending it to specialist producers for manufacturing into usable graphene, Grigor said.
However, he noted two exceptions to this problem, flagging Talga Resources as a potential leader in global graphene supply thanks to an "unusually high grade deposit of graphite in Sweden" and plans for a graphene production plant in Germany, as well asMRL Corporation in light of recent test work on their ultra-high grade deposit in Sri Lanka, and their potential for low-cost production of graphene.
"Both of these companies could bring product to the market and massively undercut the price of graphene; in doing so they will be important facilitators to the large-scale commercialization of graphene," he said.
"Whether these companies become vertically integrated to benefit from multiple points in the value chain will depend on management and corporate objectives."
"Warwick Grigor, of Far East Capital, who is running hard with the graphene story, figures that if just 5 per cent of car owners around the world went for the new high-end tyres, and 80 grams of graphene was used in each tyre, that would require 6800 tonnes of graphene, against the present output of about 1000 tonnes."
"Here’s a new one from MRL Corp (MRF) — of which more in a moment — and explains that this material “is as versatile as any discovered on Earth. Its amazing properties as the lightest and strongest material, compared with its ability to conduct heat and electricity better than anything else, mean it can be integrated into a huge number of applications.”
"Now MRL says it can do the same as Talga. This sent shares up 152.9 per cent on Wednesday, followed by another 11.6 per cent on Thursday. MRL ended the week at 7.7c — which would have been good news for the investors in a just-closed $1 million placement at 4c a share.
The junior’s project is in Sri Lanka, which is re-emerging as a graphite player. The country, when it was the British colony of Ceylon, was a significant producer of graphite, especially during the two world wars when other sources were unavailable. In 1916, Ceylon was satisfying 30 per cent of the world’s need for graphite, and in the second conflict more than 6000 shallow pits were being worked along with the large commercial mines.
MRL says it has run tests that show its graphite is amenable to single-step extraction of graphene and that “the quality of the prepared graphene from MRL’s is outstanding and comparable with the quality of graphene prepared by synthetic routes”.
As the company further tells us, graphite occurs as amorphous, flake or crystalline vein — and Sri Lanka is the only commercial source of the last, “the highest quality of naturally occurring material in the world”.
Grigor says Talga has the advantage of low-cost, open-pit mining while MRL will have to mine underground. But the latter provides an early-stage entry for investors who missed out on Talga."